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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15720
Experience:  International tax
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When completing my SA tax return, which date/dates should be

Resolved Question:

When completing my SA tax return, which date/dates should be used in determining when income tax is liable?
• Period when work was undertaken
• Date of invoice
• Date of Remittance advice
• Date of payment
My question specifically relates to work undertaken / payments either side of the year end.
Thank you.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
That depends on the accounting method you choose.
You can choose to record your business income and expenses over the tax year in 1 of the following ways:

using cash basis - record money when it actually comes in and goes out of your business (all money counts - cash, card payments, cheque and any other method)
using traditional accounting (accruals basis) - record income and expenses when you invoice your customers or receive a bill

Cash basis is generally used by most small businesses.
Customer: replied 3 years ago.

Thank you for your answer

Just to clarify on a cash basis, if I have provided Consultant Service’s during March 2014 with payment received 22 April 2014, this payment will not be liable for Income Tax until Apr 14/15 self-assessment return.

Expert:  TaxRobin replied 3 years ago.
When you are on cash you report the payments when received. So any payment received on 22 April 2014 would be reported as income on the April 14/15 SA.
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